The Revenue LinesWide moat

Amazon (AMZN) — moat facet

Three segments with the profit in reverse order to the sales: AWS earned two-thirds of eleven years' operating income, and International lost money over the same period.

Amazon reports its business in three segments, and the order they come in by sales is almost exactly the reverse of the order by profit. In 2025 North America sold $426.3 billion, International $161.9 billion and AWS $128.7 billion; operating income was $29.6 billion, $4.8 billion and $45.6 billion1. North America was 59% of sales and 37% of the profit, International 23% and 6%, AWS 18% and 57%2. The chart on the charts page draws these three bands, and this section takes them one at a time.

Cumulative operating income by segment, 2015-2025 ($B)AWS$190.4BNorth America$103.5BInternational-$10.9BCalc from Amazon Forms 10-K FY2017-FY2025 segment tables
Over eleven years AWS earned two-thirds of Amazon's operating income; International lost $10.9B in total.

Add up the eleven years since AWS was first reported as a segment and the pattern is starker. From 2015 to 2025 Amazon earned $283 billion of operating income. AWS supplied $190 billion of it, North America $103 billion, and International lost $10.9 billion over the period3. The store that most people mean when they say "Amazon" produced a little over a third of the company's cumulative profit; its overseas half produced none.

Growth runs in the same order as profit. From 2015 to 2025 AWS grew at 32% a year, North America at 21% and International at 16%4. In the second quarter of 2026 the ranking held: AWS grew 37%, North America 16% and International 15%5.

The segments are not the same as the product lines. Amazon also reports sales by what it sells (online stores, third-party seller services, advertising, subscriptions, physical stores and AWS) but it does not split those lines by segment, and it discloses no profit for any of them6. So the filings cannot say how profitable advertising is; they can say how profitable the North American store is, with advertising inside it. That is why the leaves follow the segments, and why the advertising, seller-fee and Prime economics are discussed inside the two store segments rather than on pages of their own. The product lines are charted as a separate panel.

The capital goes where the profit is, and then some. Of the $142.4 billion of property and equipment Amazon added in 2025, AWS took $96.5 billion, North America $35.9 billion and International $7.6 billion7. AWS received 68% of the new capital against 57% of the operating income8. That gap is the whole bet: that data centres bought in 2025 will earn, once they are running, what the older ones earn now.

The margins have converged a little in the last three years without changing the ranking. In 2022 North America lost 0.9% of its sales, International 6.6% and AWS earned 28.5%; in 2025 the three earned 6.9%, 2.9% and 35.4%9. Both store segments turned around at the same time and for the same stated reasons, more units and more advertising, partly offset by higher fulfilment and shipping costs10, which is why the improvement in the store is best read as the advertising business showing through rather than as a leaner warehouse. The latest quarter did not break the pattern: North America earned 7.9% of its sales, International 4.1% and AWS 39.4%11.

The three leaves take the segments in the chart's order. North America is the store that took a decade to earn a real margin; International is the store that still barely does; AWS is the business that pays for both. The number that would change this section's verdict is the one in the last paragraph: if AWS's share of new capital keeps running ten points or more above its share of operating income for another two years, the profit ranking will stay the same but the returns behind it will not.

Moat trajectory: Widening

Both store segments turned profitable at the same time as AWS reaccelerated: the three earned 6.9%, 2.9% and 35.4% of their sales in 2025, against -0.9%, -6.6% and 28.5% in 2022.

The number that tests this moat
Moat Explorer calc
AWS share of new property and equipment, 2025
68% ($96.5B of $142.4B), against 57% of operating income

The capital goes to the segment that earns the most, and more than in proportion. A gap of ten points or more for two more years would mean the returns behind the profit ranking are falling.

How it's calculated: Moat Explorer calculation from Amazon's Form 10-K segment tables and the Q2 2026 release.
Source: Amazon Form 10-K FY2025, segment note (Moat Explorer calc) ↗
Dig deeper
DIG DEEPER 01
North America
The store at home took a decade to earn a 7% margin, and advertising, not cheaper logistics, is most of why it finally did.
DIG DEEPER 02
International
Eight losing years in eleven, and 2025's record profit was mostly a weaker dollar: the store abroad has not yet shown it can pay on its own.
DIG DEEPER 03
AWS
The most profitable part of Amazon, now adding capital five times faster than profit; the question is no longer the margin but the return on the…
References
  1. ReportedIn 2025 North America sold $426.3 billion, International $161.9 billion and AWS $128.7 billion; operating income was $29.6 billion, $4.8 billion and $45.6 billion.
    Amazon.com Inc., Form 10-K, FY2025 — segment definitions (North America: 'retail sales of consumer products (including from sellers) and advertising and subscription services through North America-focused online and physical stores'; International: the same through internationally-focused online stores, including export sales; AWS: 'global sales of compute, storage, database, and other services'); segment results 2023-2025 (net sales North America $352,828M / $387,497M / $426,305M, International $131,200M / $142,906M / $161,894M, AWS $90,757M / $107,556M / $128,725M; operating income $14,877M / $24,967M / $29,619M, -$2,656M / $3,792M / $4,750M, $24,631M / $39,834M / $45,606M); net sales by product line, not split by segment; net sales by country 2025 (United States $489,657M, Germany $45,900M, United Kingdom $43,212M, Japan $30,688M, rest of world $107,467M); property and equipment, net by segment (2023-2025: North America $93,632M / $103,041M / $122,043M, International $24,357M / $25,618M / $30,632M, AWS $72,701M / $110,683M / $190,055M) and net additions (2025: North America $35,919M, International $7,617M, AWS $96,496M, consolidated $142,352M); MD&A: sales growth of 10%, 13% and 20% and their drivers, AWS growth 'partially offset by pricing changes primarily driven by long-term customer contracts', and foreign exchange effects (International net sales +$4.9 billion, International operating income +$903 million) — FY2023-FY2025 · publ. February 6, 2026 · source ↗
  2. Moat Explorer calcNorth America was 59% of sales and 37% of the profit, International 23% and 6%, AWS 18% and 57%.
    Moat Explorer calculation from Amazon's Forms 10-K FY2017, FY2018, FY2021 and FY2025 segment tables and the Q2 2026 results release: shares of 2025 sales and operating income (North America $426,305M / $716,924M = 59.5% and $29,619M / $79,975M = 37.0%; International 22.6% and 5.9%; AWS 18.0% and 57.0%); cumulative 2015-2025 operating income (AWS $190.4B, North America $103.5B, International -$10.9B, total $283.0B); compound annual growth 2015-2025 = (2025 / 2015)^(1/10) - 1 (AWS 32.2%, North America 20.9%, International 16.4%); margins = operating income / net sales (North America 2.2% in 2015, 3.7% in 2020, 2.6% in 2021, -0.9% in 2022 on -$2,847M / $315,880M; International -6.6% in 2022 on -$7,746M / $118,007M, sales -7.7%; AWS 19.1% in 2015, 26.3-29.8% in 2018-2023, 37.0% in 2024, 28.5% in 2022); International operating income excluding currency $4,750M - $903M = $3,847M against $3,792M; AWS share of 2025 net additions $96,496M / $142,352M = 67.8%; AWS net property +71.7% and operating income +14.5% in 2025; AWS operating income / average segment property 43.4% (2024) and 30.3% (2025); property per dollar of 2025 sales International $30,632M / $161,894M = 0.19, North America $122,043M / $426,305M = 0.29; fulfilment / store sales 19.4% (2022) and 18.5% (2025), shipping costs / store sales 19.2% and 17.5%; country growth 2015-2025 (rest of world 14.6x, Germany 3.9x, United Kingdom 4.8x, Japan 3.7x) — FY2015-Q2 2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the segment tables in Amazon's Forms 10-K and the Q2 2026 results release; see the source line for each operand.
  3. Moat Explorer calcAWS supplied $190 billion of it, North America $103 billion, and International lost $10.9 billion over the period.
    Moat Explorer calculation from Amazon's Forms 10-K FY2017, FY2018, FY2021 and FY2025 segment tables and the Q2 2026 results release: shares of 2025 sales and operating income (North America $426,305M / $716,924M = 59.5% and $29,619M / $79,975M = 37.0%; International 22.6% and 5.9%; AWS 18.0% and 57.0%); cumulative 2015-2025 operating income (AWS $190.4B, North America $103.5B, International -$10.9B, total $283.0B); compound annual growth 2015-2025 = (2025 / 2015)^(1/10) - 1 (AWS 32.2%, North America 20.9%, International 16.4%); margins = operating income / net sales (North America 2.2% in 2015, 3.7% in 2020, 2.6% in 2021, -0.9% in 2022 on -$2,847M / $315,880M; International -6.6% in 2022 on -$7,746M / $118,007M, sales -7.7%; AWS 19.1% in 2015, 26.3-29.8% in 2018-2023, 37.0% in 2024, 28.5% in 2022); International operating income excluding currency $4,750M - $903M = $3,847M against $3,792M; AWS share of 2025 net additions $96,496M / $142,352M = 67.8%; AWS net property +71.7% and operating income +14.5% in 2025; AWS operating income / average segment property 43.4% (2024) and 30.3% (2025); property per dollar of 2025 sales International $30,632M / $161,894M = 0.19, North America $122,043M / $426,305M = 0.29; fulfilment / store sales 19.4% (2022) and 18.5% (2025), shipping costs / store sales 19.2% and 17.5%; country growth 2015-2025 (rest of world 14.6x, Germany 3.9x, United Kingdom 4.8x, Japan 3.7x) — FY2015-Q2 2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the segment tables in Amazon's Forms 10-K and the Q2 2026 results release; see the source line for each operand.
  4. Moat Explorer calcFrom 2015 to 2025 AWS grew at 32% a year, North America at 21% and International at 16%.
    Moat Explorer calculation from Amazon's Forms 10-K FY2017, FY2018, FY2021 and FY2025 segment tables and the Q2 2026 results release: shares of 2025 sales and operating income (North America $426,305M / $716,924M = 59.5% and $29,619M / $79,975M = 37.0%; International 22.6% and 5.9%; AWS 18.0% and 57.0%); cumulative 2015-2025 operating income (AWS $190.4B, North America $103.5B, International -$10.9B, total $283.0B); compound annual growth 2015-2025 = (2025 / 2015)^(1/10) - 1 (AWS 32.2%, North America 20.9%, International 16.4%); margins = operating income / net sales (North America 2.2% in 2015, 3.7% in 2020, 2.6% in 2021, -0.9% in 2022 on -$2,847M / $315,880M; International -6.6% in 2022 on -$7,746M / $118,007M, sales -7.7%; AWS 19.1% in 2015, 26.3-29.8% in 2018-2023, 37.0% in 2024, 28.5% in 2022); International operating income excluding currency $4,750M - $903M = $3,847M against $3,792M; AWS share of 2025 net additions $96,496M / $142,352M = 67.8%; AWS net property +71.7% and operating income +14.5% in 2025; AWS operating income / average segment property 43.4% (2024) and 30.3% (2025); property per dollar of 2025 sales International $30,632M / $161,894M = 0.19, North America $122,043M / $426,305M = 0.29; fulfilment / store sales 19.4% (2022) and 18.5% (2025), shipping costs / store sales 19.2% and 17.5%; country growth 2015-2025 (rest of world 14.6x, Germany 3.9x, United Kingdom 4.8x, Japan 3.7x) — FY2015-Q2 2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the segment tables in Amazon's Forms 10-K and the Q2 2026 results release; see the source line for each operand.
  5. ReportedIn the second quarter of 2026 the ranking held: AWS grew 37%, North America 16% and International 15%.
    Amazon.com, second-quarter 2026 results release (Form 8-K, Exhibit 99.1) — net sales $200.6B (+20%), operating income $27.5B (13.7% margin), AWS sales $42.2B (+37%, fastest growth in 18 quarters, $169B annualized run rate) and operating income $16.6B (39.4% margin, against 32.9% a year earlier), advertising $19.8B (+26%), online stores +15%, third-party seller services +16%, net income $62.6B including $53.4B of non-operating income primarily from investments in Anthropic, TTM operating cash flow $161.4B against net capital purchases $169.0B and free cash flow -$7.6B; AWS AI business and chips business each above a $25B run rate; Trainium commitments from Anthropic and OpenAI; Amazon Leo at nearly 400 satellites, enough to begin initial service this year; Zoox's NHTSA Part 555 exemption to charge for rides; Alexa+ triers signing up for Prime at a nearly 25% higher rate; supplemental table Q1 2025-Q2 2026 (WW shipping cost growth 3%, 6%, 8%, 10%, 14%, 19%; WW paid unit growth 8%, 12%, 11%, 12%, 15%, 17%; seller unit mix 60-62%; North America TTM operating margin 7.4%); Q3 2026 guidance of $197.0-202.0B net sales and $22.5-26.5B operating income, with growth nearly 400 basis points higher excluding Prime Day in both years — Q2 2026 — quarter ended June 30, 2026 · publ. July 30, 2026 · source ↗
  6. ReportedAmazon also reports sales by what it sells (online stores, third-party seller services, advertising, subscriptions, physical stores and AWS) but it does not split those lines by segment, and it discloses no profit for any of them.
    Amazon.com Inc., Form 10-K, FY2025 — segment definitions (North America: 'retail sales of consumer products (including from sellers) and advertising and subscription services through North America-focused online and physical stores'; International: the same through internationally-focused online stores, including export sales; AWS: 'global sales of compute, storage, database, and other services'); segment results 2023-2025 (net sales North America $352,828M / $387,497M / $426,305M, International $131,200M / $142,906M / $161,894M, AWS $90,757M / $107,556M / $128,725M; operating income $14,877M / $24,967M / $29,619M, -$2,656M / $3,792M / $4,750M, $24,631M / $39,834M / $45,606M); net sales by product line, not split by segment; net sales by country 2025 (United States $489,657M, Germany $45,900M, United Kingdom $43,212M, Japan $30,688M, rest of world $107,467M); property and equipment, net by segment (2023-2025: North America $93,632M / $103,041M / $122,043M, International $24,357M / $25,618M / $30,632M, AWS $72,701M / $110,683M / $190,055M) and net additions (2025: North America $35,919M, International $7,617M, AWS $96,496M, consolidated $142,352M); MD&A: sales growth of 10%, 13% and 20% and their drivers, AWS growth 'partially offset by pricing changes primarily driven by long-term customer contracts', and foreign exchange effects (International net sales +$4.9 billion, International operating income +$903 million) — FY2023-FY2025 · publ. February 6, 2026 · source ↗
  7. ReportedOf the $142.4 billion of property and equipment Amazon added in 2025, AWS took $96.5 billion, North America $35.9 billion and International $7.6 billion.
    Amazon.com Inc., Form 10-K, FY2025 — segment definitions (North America: 'retail sales of consumer products (including from sellers) and advertising and subscription services through North America-focused online and physical stores'; International: the same through internationally-focused online stores, including export sales; AWS: 'global sales of compute, storage, database, and other services'); segment results 2023-2025 (net sales North America $352,828M / $387,497M / $426,305M, International $131,200M / $142,906M / $161,894M, AWS $90,757M / $107,556M / $128,725M; operating income $14,877M / $24,967M / $29,619M, -$2,656M / $3,792M / $4,750M, $24,631M / $39,834M / $45,606M); net sales by product line, not split by segment; net sales by country 2025 (United States $489,657M, Germany $45,900M, United Kingdom $43,212M, Japan $30,688M, rest of world $107,467M); property and equipment, net by segment (2023-2025: North America $93,632M / $103,041M / $122,043M, International $24,357M / $25,618M / $30,632M, AWS $72,701M / $110,683M / $190,055M) and net additions (2025: North America $35,919M, International $7,617M, AWS $96,496M, consolidated $142,352M); MD&A: sales growth of 10%, 13% and 20% and their drivers, AWS growth 'partially offset by pricing changes primarily driven by long-term customer contracts', and foreign exchange effects (International net sales +$4.9 billion, International operating income +$903 million) — FY2023-FY2025 · publ. February 6, 2026 · source ↗
  8. Moat Explorer calcAWS received 68% of the new capital against 57% of the operating income.
    Moat Explorer calculation from Amazon's Forms 10-K FY2017, FY2018, FY2021 and FY2025 segment tables and the Q2 2026 results release: shares of 2025 sales and operating income (North America $426,305M / $716,924M = 59.5% and $29,619M / $79,975M = 37.0%; International 22.6% and 5.9%; AWS 18.0% and 57.0%); cumulative 2015-2025 operating income (AWS $190.4B, North America $103.5B, International -$10.9B, total $283.0B); compound annual growth 2015-2025 = (2025 / 2015)^(1/10) - 1 (AWS 32.2%, North America 20.9%, International 16.4%); margins = operating income / net sales (North America 2.2% in 2015, 3.7% in 2020, 2.6% in 2021, -0.9% in 2022 on -$2,847M / $315,880M; International -6.6% in 2022 on -$7,746M / $118,007M, sales -7.7%; AWS 19.1% in 2015, 26.3-29.8% in 2018-2023, 37.0% in 2024, 28.5% in 2022); International operating income excluding currency $4,750M - $903M = $3,847M against $3,792M; AWS share of 2025 net additions $96,496M / $142,352M = 67.8%; AWS net property +71.7% and operating income +14.5% in 2025; AWS operating income / average segment property 43.4% (2024) and 30.3% (2025); property per dollar of 2025 sales International $30,632M / $161,894M = 0.19, North America $122,043M / $426,305M = 0.29; fulfilment / store sales 19.4% (2022) and 18.5% (2025), shipping costs / store sales 19.2% and 17.5%; country growth 2015-2025 (rest of world 14.6x, Germany 3.9x, United Kingdom 4.8x, Japan 3.7x) — FY2015-Q2 2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the segment tables in Amazon's Forms 10-K and the Q2 2026 results release; see the source line for each operand.
  9. Moat Explorer calcIn 2022 North America lost 0.9% of its sales, International 6.6% and AWS earned 28.5%; in 2025 the three earned 6.9%, 2.9% and 35.4%.
    Moat Explorer calculation from Amazon's Forms 10-K FY2017, FY2018, FY2021 and FY2025 segment tables and the Q2 2026 results release: shares of 2025 sales and operating income (North America $426,305M / $716,924M = 59.5% and $29,619M / $79,975M = 37.0%; International 22.6% and 5.9%; AWS 18.0% and 57.0%); cumulative 2015-2025 operating income (AWS $190.4B, North America $103.5B, International -$10.9B, total $283.0B); compound annual growth 2015-2025 = (2025 / 2015)^(1/10) - 1 (AWS 32.2%, North America 20.9%, International 16.4%); margins = operating income / net sales (North America 2.2% in 2015, 3.7% in 2020, 2.6% in 2021, -0.9% in 2022 on -$2,847M / $315,880M; International -6.6% in 2022 on -$7,746M / $118,007M, sales -7.7%; AWS 19.1% in 2015, 26.3-29.8% in 2018-2023, 37.0% in 2024, 28.5% in 2022); International operating income excluding currency $4,750M - $903M = $3,847M against $3,792M; AWS share of 2025 net additions $96,496M / $142,352M = 67.8%; AWS net property +71.7% and operating income +14.5% in 2025; AWS operating income / average segment property 43.4% (2024) and 30.3% (2025); property per dollar of 2025 sales International $30,632M / $161,894M = 0.19, North America $122,043M / $426,305M = 0.29; fulfilment / store sales 19.4% (2022) and 18.5% (2025), shipping costs / store sales 19.2% and 17.5%; country growth 2015-2025 (rest of world 14.6x, Germany 3.9x, United Kingdom 4.8x, Japan 3.7x) — FY2015-Q2 2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the segment tables in Amazon's Forms 10-K and the Q2 2026 results release; see the source line for each operand.
  10. ReportedBoth store segments turned around at the same time and for the same stated reasons, more units and more advertising, partly offset by higher fulfilment and shipping costs, which is why the improvement in the store is best read as the advertising business showing through rather than as a leaner warehouse.
    Amazon.com Inc., Form 10-K, FY2025 — segment definitions (North America: 'retail sales of consumer products (including from sellers) and advertising and subscription services through North America-focused online and physical stores'; International: the same through internationally-focused online stores, including export sales; AWS: 'global sales of compute, storage, database, and other services'); segment results 2023-2025 (net sales North America $352,828M / $387,497M / $426,305M, International $131,200M / $142,906M / $161,894M, AWS $90,757M / $107,556M / $128,725M; operating income $14,877M / $24,967M / $29,619M, -$2,656M / $3,792M / $4,750M, $24,631M / $39,834M / $45,606M); net sales by product line, not split by segment; net sales by country 2025 (United States $489,657M, Germany $45,900M, United Kingdom $43,212M, Japan $30,688M, rest of world $107,467M); property and equipment, net by segment (2023-2025: North America $93,632M / $103,041M / $122,043M, International $24,357M / $25,618M / $30,632M, AWS $72,701M / $110,683M / $190,055M) and net additions (2025: North America $35,919M, International $7,617M, AWS $96,496M, consolidated $142,352M); MD&A: sales growth of 10%, 13% and 20% and their drivers, AWS growth 'partially offset by pricing changes primarily driven by long-term customer contracts', and foreign exchange effects (International net sales +$4.9 billion, International operating income +$903 million) — FY2023-FY2025 · publ. February 6, 2026 · source ↗
  11. ReportedThe latest quarter did not break the pattern: North America earned 7.9% of its sales, International 4.1% and AWS 39.4%.
    Amazon.com, second-quarter 2026 results release (Form 8-K, Exhibit 99.1) — net sales $200.6B (+20%), operating income $27.5B (13.7% margin), AWS sales $42.2B (+37%, fastest growth in 18 quarters, $169B annualized run rate) and operating income $16.6B (39.4% margin, against 32.9% a year earlier), advertising $19.8B (+26%), online stores +15%, third-party seller services +16%, net income $62.6B including $53.4B of non-operating income primarily from investments in Anthropic, TTM operating cash flow $161.4B against net capital purchases $169.0B and free cash flow -$7.6B; AWS AI business and chips business each above a $25B run rate; Trainium commitments from Anthropic and OpenAI; Amazon Leo at nearly 400 satellites, enough to begin initial service this year; Zoox's NHTSA Part 555 exemption to charge for rides; Alexa+ triers signing up for Prime at a nearly 25% higher rate; supplemental table Q1 2025-Q2 2026 (WW shipping cost growth 3%, 6%, 8%, 10%, 14%, 19%; WW paid unit growth 8%, 12%, 11%, 12%, 15%, 17%; seller unit mix 60-62%; North America TTM operating margin 7.4%); Q3 2026 guidance of $197.0-202.0B net sales and $22.5-26.5B operating income, with growth nearly 400 basis points higher excluding Prime Day in both years — Q2 2026 — quarter ended June 30, 2026 · publ. July 30, 2026 · source ↗
Sources
Generated September 22, 2026